Tata Capital picks up stake in Quikjet Cargo: Report

Mumbai: The Tata Group has picked up a stake in Bangalore-based cargo airline Quikjet Cargo, according to a media report citing unidentified sources. Quikjet is due to start operations in April.

The Tata Group has a 6 per cent stake in New Delhi-based low-cost airline, SpiceJet Ltd.

According to the report, Tata Capital Ltd, the Tata group's private equity arm and a wholly owned subsidiary of Tata Sons Ltd, the group's holding company, picked up the stake though the report was unable to pin down either the size or the value of the stake.

The reports cites people familiar with the transaction as saying that Tata Capital's investment in Quikjet Cargo may be in the nature of a ''financial investment,'' along the lines of the Group's investment in SpiceJet.

Cardinal Aviation Pte Ltd, a Singapore-based private equity firm and Mumbai-based logistics firm, AFL Pvt Ltd, has promoted Aviation Consultancy Services Pvt Ltd, Quikjet Cargo's parent company.

Specialized infrastructure finance companies such as Infrastructure Development Finance Co. Ltd and Infrastructure Leasing and Financial Services Ltd have picked up minority stakes in Aviation Consultancy Services.

According to the report, Quikjet Cargo will initially deploy Boeing B737-300 cargo planes on its routes, using Bangalore's new airport as a hub. The airline will start international cargo operations after consolidating its operations in the domestic market.